Case tittle | Amir Halani Surat (Gujarat) VS The State of Madhya Pradesh |
Court | Madhya Pradesh High Court |
Honourable Judge | Justice Anil Verma |
Citation | 2022 (09) GSTPanacea 646 HC Madhya Pradesh Misc. Criminal Case No. 44052 Of 2022 |
Judgment Date | 23-September-2022 |
The applicant has submitted a first bail application under Section 439 of the Code of Criminal Procedure, 1973. He has been incarcerated since June 6, 2022, in relation to Crime No. 41/2022, which is being investigated by the Cyber Cell of the Indore District Police Station in Madhya Pradesh. The charges against him include offenses under various sections of the Indian Penal Code (IPC) — 419 (cheating by personation), 467 (forgery of valuable security), 468 (forgery for purpose of cheating), 470 (forged document or electronic record), 471 (using as genuine a forged document or electronic record), and 34 (acts done by several persons in furtherance of common intention). Additionally, he faces charges under Sections 66-C (identity theft) and 66-D (cheating by personation using computer resources) of the Information Technology Act.
The prosecution’s case originated from a complaint lodged by the Additional Commissioner of GST and Central Excise with the Cyber Crime unit in Indore. The complaint was regarding the uploading of fraudulent documents on the GST portal, leading to illegitimate online registrations and consequent defrauding of the government exchequer. The investigation by Central Excise revealed that these GST registrations were procured using deceptive methods by unknown perpetrators. These miscreants allegedly used the personal details of random individuals to register on the GST portal fraudulently. Verification with banks revealed that the bank accounts associated with these registrations were either non-existent or registered under names different from those used during the online GST registration process.
The fraudulent activity involved using forged documents to hijack the identities of unsuspecting individuals, enabling the miscreants to obtain GST registrations. These registrations were then used to generate and transfer fake input tax credits, thereby defrauding the government treasury. The Cyber Cell of Indore Police took over the investigation based on these findings.
The applicant has filed a bail application under Section 439 of the Code of Criminal Procedure, 1973, after being in jail since 6th June 2022. The case against the applicant arises from Crime No. 41/2022 registered at P.S. – Cyber Cell Indore District Indore (M.P.). The charges against the applicant are under various sections including Section 419, 467, 468, 470, 471, and 34 of the Indian Penal Code (IPC), along with Section 66-C and 66-D of the IT Act.
According to the prosecution, the case originated when the Additional Commissioner of GST and Central Excise reported to the Cyber Crime Indore about fraudulent documents uploaded on the GST Portal. These documents were used to obtain online registrations, thereby defrauding the government exchequer. During the investigation conducted by the Central Excise, it was discovered that the GST registrations were acquired through fraudulent means by individuals described as miscreants. These individuals allegedly used the bank account details of random persons on the GST portal for registration purposes. Subsequent verification by banks revealed that these accounts either did not exist or were registered under different names than those claimed during the online registration process on the GST Portal.
Further investigation by the Cyber Cell Indore revealed that the miscreants, including the applicant and other co-accused, allegedly used forged documents to establish fictitious firms under the names of unidentified persons. These firms were then used to facilitate the generation and passing on of fake input tax credit, thus causing financial loss to the exchequer.
Based on these findings, a case was registered against the applicant and others involved in this fraudulent scheme. The bail application seeks relief for the applicant against the charges leveled, arguing for bail under Section 439 of the CrPC.
In summary, the applicant is seeking bail in a case involving allegations of using forged documents to fraudulently obtain GST registrations and commit financial fraud against the government. The bail application contends that the applicant should be released from custody pending trial.
The applicant has filed a bail application under Section 439 of the Code of Criminal Procedure, 1973, after being incarcerated since 6th June 2022 in connection with Crime No. 41/2022 registered at P.S. – Cyber Cell Indore District Indore (M.P.). The charges against the applicant include offences under Section 419, 467, 468, 470, 471, 34 of the Indian Penal Code (IPC) and Section 66-C, 66-D of the Information Technology (IT) Act.
According to the prosecution, the case originated when the Additional Commissioner GST and Central Excise alerted the Cyber Crime Indore about fraudulent documents uploaded on the GST Portal, leading to unauthorized online registrations and potential financial fraud against the government. The investigation by Central Excise revealed that miscreants had obtained GST registrations using falsified documents and unauthorized bank account details, often registered under fictitious names or unrelated to the claimed identities during online registration. These registrations were allegedly used to fraudulently claim input tax credits, causing losses to the exchequer.
Further investigations by the Cyber Cell Indore implicated the applicant and co-accused in the creation of forged firms registered under the names of unsuspecting individuals. As a result, a case was registered against the applicant.
The applicant, through counsel, maintains innocence and asserts that he has been wrongly implicated in the case. He highlights that he has been in custody since early June 2022 and points out that similar cases based on comparable circumstances have been filed by various authorities or individuals. The applicant argues that there is insufficient legal evidence linking him to the alleged crimes, emphasizing that while the case hinges on documentary evidence, a conclusive trial outcome will likely be protracted.
In support of the bail plea, counsel cites a precedent from the Hon’ble Supreme Court dated 23rd August 2022, in which bail was granted in a similar context (Cri.A. No. 1400 of 2022, Tarak Dash Mukharjee and others Vs. State of UP and others), asserting the applicant’s right to bail under similar circumstances.
Lastly, it is noted that the applicant is a permanent resident of Gujarat and requests release on bail considering the circumstances of the case and his residence status.
In conclusion, the bail application seeks the applicant’s release from custody pending trial, contending innocence, lack of substantial evidence, and citing judicial precedent in support of the request.
The applicant has filed a bail application under Section 439 of the Code of Criminal Procedure, 1973, following his arrest on 6th June 2022 in connection with Crime No. 41/2022 at P.S. Cyber Cell Indore, District Indore (M.P.). The charges against him include offences under Section 419, 467, 468, 470, 471, 34 of the Indian Penal Code (IPC), and Sections 66-C, 66-D of the Information Technology Act.
According to the prosecution, the case stems from a complaint by the Additional Commissioner GST and Central Excise regarding fraudulent documents uploaded on the GST Portal, leading to illicit online registrations and defrauding of government funds. The investigation revealed that miscreants used forged documents and others’ identities to obtain GST registrations and fake input tax credit, thereby defrauding the exchequer. The applicant, along with co-accused, allegedly created forged firms registered under unknown persons’ names to facilitate these illegal activities.
The applicant claims innocence and asserts that he has been falsely implicated. He has been in jail since his arrest, arguing that there is no substantial evidence linking him to the crimes alleged. His counsel cites a Supreme Court judgment in support of bail, emphasizing the potential lengthy duration of trial proceedings.
However, the prosecution opposes the bail application, citing prima facie evidence against the applicant and the involvement of multiple co-accused who are still absconding. They argue that the cyber crime committed has caused significant financial loss to the government.
The court has examined the case diary and the lower court’s order on the matter.
The applicant filed a bail application under Section 439 of the Code of Criminal Procedure, 1973, stating that he has been in custody since 6th June 2022, in connection with Crime No. 41/2022 registered at the Cyber Cell, Indore District, Madhya Pradesh. The charges against him include offences under Section 419, 467, 468, 470, 471, 34 of IPC and 66-C, 66-D of the IT Act.
According to the prosecution, the case revolves around the fraudulent use of identities to obtain GST registrations and commit financial fraud. It was alleged that the applicant and his associates used forged documents and the identities of unsuspecting individuals to register firms like Shanti Impex, M/s A.N. Enterprises, M/s Kasyap Enterprises, and M/s Rahul Enterprises on the GST portal. These registrations were reportedly used to generate and pass on fake input tax credits, defrauding the government.
The applicant, through his counsel, asserted innocence and claimed to be falsely implicated. It was argued that he is a permanent resident of Gujarat and cited a relevant Supreme Court judgment in support of his innocence plea. The defence highlighted the prolonged nature of trials in such cases and the lack of direct evidence linking the applicant to the alleged crimes.
In opposition, the Public Prosecutor argued that there is substantial prima facie evidence against the applicant. It was emphasized that many co-accused individuals are still absconding, indicating the seriousness of the alleged cybercrime and the significant financial losses incurred by the government.
After examining the case diary and considering the arguments from both sides, the court noted the involvement of the applicant in operating the alleged fraudulent firms alongside co-accused Suleman Karim Ali Meghani. Concerns were raised about the possibility of tampering with evidence or absconding if bail were granted, particularly since other accused persons are at large.
Consequently, the court concluded that due to the prima facie evidence and the seriousness of the allegations, bail cannot be granted to the applicant. Therefore, the bail application under Section 439 of Cr.P.C. was dismissed by the court.
This decision was based on the gravity of the offences, the potential risk of interference with the prosecution’s case, and the continued absconding of other accused persons.
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